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Major European Markets Edging Higher After Recent Losses

stockmarkets aug15 10sep21 lt

Despite some disappointing data from the region, European stocks are up in positive territory on Friday, riding on hopes economic recovery is on track after the latest data from the U.S. showed jobless claims in the world's largest economy saw a bigger than expected drop last week.

Investors continue to digest the European Central Bank's monetary policy announcement, and are tracking updates about the spread of the delta variant of coronavirus in several countries.

The pan European Stoxx 600 is rising 0.3%. The U.K.'s FTSE 100 is climbing 3.4%, Germany's DAX is up 0.46% and France's CAC 40 is gaining 0.36%.

In the UK market, Antofagasta is climbing more than 3.5%. Experian, Evraz, Lloyds Banking Group, Burberry Group, RightMove, Glencore, Rio Tinto, Anglo American Plc and Weir Group are gaining 1.5 to 2.3%.

IAG is declining more than 3%. Barratt Developments is down by about 1.6% and Coca-Cola HBC is lower by 1%.

In France, LVMH is surging up 2.2%. Hermes International is gaining 1.7%, while STMicroElectronics and Kering both are up 1.5%. Schneider Electric is moving up 1.1%.

Unibail Rodamco is declining 2.7%, Air France-KLM is lower by 1.7%, Atos is down 1.4%, Vinci is drifting down 1.1% and Dassault Systemes is down 1%.

Shares of petroleum firm Rubis is down sharply as problems in the Caribbean region weighed on the company's earnings.

In Germany, Infineon Technologies is rallying 2.3%, Adidas is gaining 2%, Siemens is climbing 1.8%, Daimler is up 1.7% and Deutsche Bank is rising 1.5%.

Fresenius Medical Care is lower by about 4.4% and Deutsche Telekom is down 2.1%.

In economic news, French industrial production and manufacturing grew at slower rates in July, preliminary data from the statistical office INSEE showed.

Industrial production grew 0.3% in July, after rising 0.6% in June. Economists had forecast 0.4% gain. Manufacturing output rose 0.6% after a 1% increase in June.

Germany consumer price inflation accelerated to the highest level since late 1993, rising marginally to 3.9% in August, final data from Destatis showed. Inflation rose 3.8% in July.

The UK economy logged weak growth in July as the output remained flat in services, and contracted further in construction on supply shortages, data from the Office for National Statistics showed on Friday.

Gross domestic product expanded 0.1% in July from June, when the economy grew 1%. This was also slower than the 0.6% growth economists had forecast.

Although the economy expanded for the sixth consecutive month, output remained 2.1% below its pre-coronavirus pandemic level.

The European Central Bank (ECB) on Wednesday left its key interest rate, the main refinancing rate, unchanged at zero, the deposit rate at -0.50% and the marginal lending rate at 0.25%, in line with economists' expectations.

The ECB said it will slow the pace of its emergency asset purchases, which were launched last year to support the economy amid the Covid-19 crisis, as policymakers worry higher inflation may last long.

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